Question

Which of the following is a disadvantage of establishing a wholly owned subsidiary?

a. Establishing a wholly owned subsidiary is generally the most costly method.
b. Firms will typically lose control over any technological competence.
c. A firm engaging in this strategy will have little control over operations in the foreign country.
d. Firms will face difficulties in building a certain organizational culture in greenfield ventures.

Answer 1

The answer is letter A

Step-by-step explanation:

Establishing a wholly owned subsidiary is generally the most costly method.